N.Y. Uniform Commercial Code Law § 2-a-512: Lessee's Duties as to Rightfully Rejected Goods

Section 2-A-512. Lessee's Duties as to Rightfully Rejected Goods.

(1) Except as otherwise provided with respect to goods that threaten

to decline in value speedily (Section 2-A-511) and subject to any

security interest of a lessee (Section 2-A-508(5)):

(a) the lessee, after rejection of goods in the lessee's

possession, shall hold them with reasonable care at the

lessor's or the supplier's disposition for a reasonable time

after the lessee's seasonable notification of rejection;

(b) if the lessor or the supplier gives no instructions within a

reasonable time after notification of rejection, the lessee

may store the rejected goods for the lessor's or the

supplier's account or ship them to the lessor or the supplier

or dispose of them for the lessor's or the supplier's account

with reimbursement in the manner provided in Section 2-A-511;

but

(c) the lessee has no further obligations with regard to goods

rightfully rejected.

(2) Action by the lessee pursuant to subsection (1) is not acceptance

or conversion.